Patrol finds store price discrepancies

Error rate is low, county says that shows program works

Businesses in San Diego County have been issued $130,000 of fines in the past two years for pricing errors that the county acknowledges can be unintentional.

The 14-year-old program costs the county more than $600,000 a year and has apparently been very effective at enforcing accurate pricing, judging by the minuscule level of overcharges found.

A U-T Watchdog review of data showed inspectors found overcharges of one-tenth of 1 percent of bills checked in September — that is, $94 out of $64,278 in transactions reviewed. That may seem like a tiny fraction, but multiplied over $12 billion in quarterly transactions in the county, it could add up.

Worthwhile program protecting consumers
61% (224)

Useless bureaucracy, hurting business
26% (95)

Both
10% (37)

Other
2% (9)

365 total votes.

Undercover county inspectors enter businesses unannounced, gather up a buggy or basket of goods, and check to make sure the price advertised matches what rings up at the register.

While the county and some economists laud the effort as a safeguard against faulty pricing, other experts found the enforcement excessive and cautioned that it could prevent new businesses from flourishing.

“I’m all for consumer protection, but I think this is an area that is overkill, to have inspectors go out and check the prices,” said Clark Howard of Atlanta, who hosts a nationally syndicated broadcast about “how to save more, spend less and avoid getting ripped off.”

Art Carden, economist and research fellow with the Independent Institute in Oakland, CaliforniaSubmitted

“If firms are pricing deceptively, they’ll develop bad reputations. And further, if they’re actually engaging in fraudulent practices, that’s something that consumers can take them to court over,” said Carden, an economist and research fellow with the libertarian Independent Institute in Oakland.

“This program was created to protect consumers, and it’s important that the county continues to watchdog businesses that may be overcharging customers,” Jacob said. “Just within the past few years, the county has uncovered price discrepancies at many stores, including prominent retailers such as Wal-Mart and Rite Aid, so it’s critical that retailers continue to be held accountable.

“Every single overcharge the county uncovers is likely multiplied by the number of customers who bought that same item on that same day – and that can add up to big money.”

The county program’s $600,000 cost includes personnel, but not overhead. It is paid for in part by the registration fees that more than 4,300 businesses pay annually, including gas stations, grocery stores and clothing retailers.

Among those fined recently was Jimmy Gilchriest, whose family has owned a lumber-and-hardware store in Ramona since 1989. The store was issued $500 in fines following inspections last fall and in March, for errors that amounted to $4.50 out of $320.25 worth of items.

“If we made a mistake, we will 100 percent honor what’s lower,” Gilchriest said, adding that he likes the idea of being held accountable but feels the fines are not necessary to reinforce what he already knows is good business practice.